NIFTY & BANK NIFTY VIEW FOR 04/07/2016

LOOKING AT LAST TRADING SESSION WE FEEL THAT WE HAVE MADE EARLY EXIT IN 8000 CE BUT THEREAFTER ANOTHER MISTAKE THAT WE DID WAS TO ENTER IN 8200 PE.

NOW LETS TRY TO MOVE FORWARD TO OPTION CHAIN ANALYSIS.

Nifty

July Series

If we consider liquidation from 8000 to 8500 then 8100-8200-8400 CE witnessed more than 350k shares liquidation during last trading session (8100-8200 ITM gives bit surprise) but at the same time 8300-8350-8450-8500 CE added more than 725k shares in OI. 8500 CE is with highest OI but 8600 CE added more than 500k shares in OI.

Highest OI tag is with 8000 PE & 8500 CE.

Bank Nifty 
7th July 2016 Option chain (Weekly Expiry)
Out of our expectation 18500 CE gained highest OI tag but sudden surprise 450k were added in 18100-18200-18300 together. 18500 CE witnessed additions of about 175k shares. 

Highest OI tag is with 17500 PE & 18500 CE 

July Series
Monthly expiry contract is also showing almost same scenario on CE front. 18000 & 18500 are having almost same OI (about 200k shares) due to additions of 51k shares in OI in 18500 CE. PE front 17000-17500-18000 together added more than 125k shares in OI. 

Highest OI tag is with 17000 PE & 18000/18500 CE. Bank Nifty Future (July Contract) closed near to highest OI. 

NOW LETS SEE SOME IMPORTANT NIFTY RATIO

PE RATIO FOR NIFTY STANDS AT 22.86
PE RATIO FOR BANK NIFTY STANDS AT 25.87

JULY SERIES
NIFTY PCR ON BASIS OF OI IS 1.04
BANK NIFTY PCR ON BASIS OF OI IS 1.13

FINAL CONCLUSION

Nifty & Bank Nifty
Without doubt 8500 may act as resistance for Bulls as per options chain (as July & August month highest OI stands at 8500 but 8800 CE - August series is also having good OI) ITM CE liquidations on 1st day of series can be considered as sign of relief or nearby top. Additions in 8500-8700 CE gives hint of strong resistance zone. Additions 8200-8300 PE hints that Bears may immediately target that level. 

18500 CE (Weekly expiry) has got highest OI but still monthly expiry both 18000 & 18500 are having same OI. We can see some more additions in 18500 CE (monthly) so that it may act as strong resistance. 

Overall we can see that we can still have one more Bull day for additions in higher CE with nearby PE additions. 

Open position is in 8200 PE bought around 100-105 level. Exit on this shall be informed on whatsapp. 

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STANDARD DISLCOSURE:-

PLEASE NOTE THESE MOVES ARE AS PER CHARTS AND OPTIONS CHAIN WHICH MAY REVERSE ANYTIME. THIS POST IS FOR EDUCATION PURPOSE ONLY AND NOT TO BE CONSIDERED AS BUYING OR SELLING RECOMMENDATION. WE ARE NOT SEBI REGISTERED RESEARCH ANALYST. WE ARE NOT RESPONSIBLE FOR ANY PROFIT OR LOSS FOR ANY TRADES EXECUTED ON BASIS OF THIS POST. WHILE UTMOST CARE HAS BEEN TAKEN WHILE ANALYSING CHARTS & OPTIONS DATA BUT IF INCASE THERE IS ANY HUMAN ERROR WE ARE APOLOGISE FOR IT.

WE REQUEST ALL READERS TO GIVE THEIR FEEDBACK ON NIFTY50STRIKER@GMAIL.COM OR BY CALLING ON 08866145155 OR BY COMMENTING ON THIS BLOG POST.

ABOUT AUTHOR ~ MANUSH VADHER

WORKING AS SHAREKHAN SUB BROKER AND HOLDING MASTER DEGREE IN FINANCE HAVING EXPERIENCE OVER 10 YEARS IN CAPITAL MARKET. 

NIFTY & BANK NIFTY VIEW FOR 04/03/2016